Consumer detriment in B2C transactions under consumer law in india: role of consumer courts

Abstract

The Indian consumer protection law confines itself to Business to Consumer (B2C) transactions and leaves out Business to Business (B2B) transactions from its ambit. This issue has been a subject of litigation in consumer courts over the years. The Supreme Court of India has had to adjudicate the issue a number of times over last three and a half decades. A two Judge Bench of the Supreme Court of India (SCI) in the recent case of Shrikant G. Mantri vs Punjab National Bank again observed that ‘business to business’(B2B) disputes cannot be construed as consumer disputes and claims arising out of the same cannot be entertained under the Consumer Protection Act (CPA). The judgment brings back to focus one of the most contentious is- sues in the consumer protection arena – the ‘commercial purpose’ interpretation. This research paper seeks to explore the rationale for the rigid classification between Business to Business (B2B) and Business to Consumer (B2C) transactions and argues the justification of the said classification under the CPA. It shall trace the development of consumer jurisprudence on this issue through some of the land- mark Judgments of the National Commission (NC) and Supreme Court of India (SCI).